The FCA has published Consultation Paper 14/18: Quarterly consultation no.6 (CP14/18).

In CP14/18 the FCA invites comments on various miscellaneous amendments to its Handbook. The proposed amendments relate to:

  • changes to the Supervision manual (SUP). The FCA proposes to amend the procedure for processing a direction or determination by the FCA waiving, varying or disapplying requirements in the Consumer Credit Act 1974 (CCA). The FCA proposes to remove its stated aim of giving a direction or determination decision within 20 business days, to bring it into line with SUP 8.3.5G, which outlines the process for waivers of non-CCA rules. This will allow the FCA to respond more quickly when firms specify faster turnaround times in line with commercial requirements;
  • changes to the Listing Rules, Prospectus Rules and Disclosure and Transparency rules. Minor amendments to clarify Listing Regime provisions, correct and update guidance and propose a new fee for reviewing a material change to a published investment policy;
  • changes to chapter 6 of the Client Assets sourcebook. The FCA proposes to amend the custody rules in CASS 6 to apply to:
    • small alternative investment fund managers (AIFMs) when carrying out certain activities that are not already caught by CASS 6. The changes apply to both small authorised UK AIFMs and small registered UK AIFMS. The FCA explains that the previous amendments to CASS 6 and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 have had an unintended effect. As a result, a number of small AIFMs who would not be required to appoint a depositary to hold AIF assets (to whom CASS 6 and Rule 3.11 in the Investment Funds sourcebook (FUND 3.11) would apply) do not themselves fall within the scope of CASS 6, even though they are carrying on activities which would otherwise constitute the regulated activity of safeguarding and administering investments; and
    • all assets held by depositaries of authorised alternative investment funds (AIFs). The FCA explains that CASS 6 may not apply in respect of all the non-AIF custodial assets that may be held by a depositary of an authorised AIF. This gap in the application of CASS 6 is unintended and the proposed changes address this.

The deadline for responses to the proposals in CP14/18 is 5 November 2014.

View CP14/18: Quarterly consultation no.6, 5 September 2014